Let’s know what is an IPO and what is an IPO full form? IPO means (fullform) initial public offering.
IPO Full Form
What is an IPO? Initial public offering is the process by which a private company can become public by selling its stock to the general public. An IPO is a means of raising money from the market. Investors who apply and receive the allotted shares of the IPO become shareholders (share owners) of the company.
Companies can raise equity capital with the help of an IPO by issuing new shares to the public or existing shareholders can sell their shares to the public without raising any new capital.
Ans: Any adult who is competent to enter into a legal contract can apply for an IPO. A demat account is necessary for investing in an IPO as nowadays all the allotment is done in demat form only.
Ans: Technically, you do not need a trading account to apply for an IPO. A demat account (a demat account in full form is a dematerialized account) alone will suffice.
Ans: Generally, the company will keep the IPO open for a period of 3-4 days so that investors can apply to the IPO. All valid applications have to be logged into the system before the last day of trading stops.